Applying the Theory of Planned Behavior (TPB) to Predict Internet Tax Filing Intentions

Abstract

In common with many other countries, the Malaysian government has recently made it possible for taxpayers to file their income tax returns manually or by email, with the latter being preferred because of its speed and simplicity. This study examines factors that deermine which of these two methods taxpayers will choose. The Theory of Planned Behavior (TPB) was used to model the behavioral intentions of taxpayers, hypothesized to be influenced by their attitudes, subjective norms and perceived behavioral controls. The subject of the study were 125 taxpayers each of whom completed a specially-developed questionnaire that measured each of the four independent variable as well as their intention to complete their tax returns by email. A multiple regression analysis of their responses found that attitude, perceived behavioral control and subjective norm positively influence the behaviorial intention of taxpayers-to choose the email option. Implication of this study is also discussed. Introduction As part of the electronic government and also the Multimedia Super Corridor initiatives, the Inland Revenue Board Malaysia (the IRB) is currently streamlining the tax filing process through the use of information and communication technology (ICT) and is working to reform tax administrative policies to embrace an electronic income tax filing system (SGATAR, 2001). The main objectives of the IRB in embracing an electronic filing (e-Filing) system are to facilitate tax compliance and to provide improved taxpayer service through administrative improvement (Ming-Ling et al, 2004). Taxpayers will feel it is convenient, fast and accurate tax computation through e-filing. Taxpayers only need the Digital Certificate, MyKad and key in the transaction details into a computer. The system computes the tax payable automatically, instantly and accurately. And the acknowledgement email of tax forms return from IRB can be received within seconds. The features and benefits of e-filing is immediate acknowledgement, round-the-clock availability and convenience, immediate processing time, cost-savings, user-friendly as well as security. (http://www.msctrustgate.com/). The basic e-Filing requirements are as follows: Tax reference number, PIN Number; Pentium III processor or above; Internet connections; Microsoft Windows 2000 (Latest service pack); Microsoft Windows XP (Latest service pack); IE (Internet Explorer) Ver. 5.0 and above. The website for filing taxes is as shown below https://spsd.hasil.org.my/pki/e/mainpage.html and the procedures involved in the e-Filing process can be accessed from widely available websites, the details of which are made known to all taxpayers. The objective of this paper is to model the intention to use e-Filing amongst tax filers using the Theory of Planned Behavior (TPB). The next section will review the relevant literature followed by the research methodology section, findings, discussion and implications. The objective of this paper is to model the intention to use e-Filing amongst tax filers using the Theory of Planned Behavior (TPB). The next section will review the relevant literature followed by the research methodology section, findings, discussion and implications. In psychology, the TPB is a theory about the link between attitudes and behavior. It was proposed by leek Aj zen (1991). The TPB is an extension of Theory of Reasoned Action (TRA) made necessary by the original model's limitations in dealing with behaviors over which people have incomplete volitional control (Ajzen, 1991). TPB holds that human action is guided by three kinds of considerations which are beliefs about the likely outcomes of the behavior and the evaluations of these outcomes (behavioral beliefs), beliefs about the normative expectations of others and motivation to comply with these expectations (normative beliefs), and beliefs about the presence of factors that may facilitate or impede performance of the behavior and the perceived power of these factors (control beliefs). …

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